Trade optimism is keeping haven currencies lower to start the session
Both the yen and the franc are trading around session lows now with USD/JPY pushing gains just above the 108.00 handle amid more optimistic sentiment ahead of the Trump-Xi meeting in Osaka this weekend. An earlier report suggested a tentative trade truce between the two countries ahead of the meeting and that's adding to the positive momentum in risk assets since Asia Pacific trading.
Meanwhile, the dollar is holding slightly firmer as markets continue to maintain their focus on trade talks that is to come. That said, ranges for most dollar pairs remain rather modest with EUR/USD sitting near 1.1350 but still holding within a 26 pips range.
Same can be said for the aussie as despite gains, AUD/USD is sitting under the 0.7000 level and holding a 15 pips range to start the day.
Looking ahead, focus for the euro over the next two days will be on inflation data and we'll have Spain and Germany releases to follow today. Otherwise, expect the market focus in the bigger picture to continue to be on US-China trade talks. As such, be wary of more headlines that could mess around with market sentiment prior to the Trump-Xi meeting.